CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY

12 Months Ended

Dec. 31, 2022

20. CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY

The following is condensed financial information for Citizens Financial Services, Inc.:

CITIZENS FINANCIAL SERVICES, INC.
CONDENSED BALANCE SHEET

	December 31,
(in thousands)	2022		2021
Assets:
Cash	$	13,490	$	15,046
Investments		2,116		2,150
Investment in subsidiary:
First Citizens Community Bank		200,610		212,057
Other assets		2,291		1,297
Total assets	$	218,507	$	230,550

Liabilities:
Other liabilities	$	968	$	679
Borrowed funds		17,392		17,379
Total liabilities		18,360		18,058
Stockholders’ equity		200,147		212,492
Total liabilities and stockholders’ equity	$	218,507	$	230,550

CITIZENS FINANCIAL SERVICES, INC.
CONDENSED STATEMENT OF INCOME
	Year Ended December 31,
(in thousands)	2022			2021		2020
Dividends from:
Bank subsidiary	$	8,331		$	8,994	$	16,171
Equity securities		114			104		45
Interest income		6			-		-
Total income		8,451			9,098		16,216
Realized securities gains (losses)		(219	)		284		(23	)
Expenses		1,307			1,008		775
Income before equity in undistributed earnings of subsidiary		6,925			8,374		15,418
Equity in undistributed earnings - First Citizens Community Bank		22,135			20,744		9,685
Net income	$	29,060		$	29,118	$	25,103
Comprehensive (loss) income	$	(3,926	)	$	26,376	$	28,319

CITIZENS FINANCIAL SERVICES, INC.
STATEMENT OF CASH FLOWS
	Year Ended December 31,
(in thousands)	2022			2021			2020
Cash flows from operating activities:
Net income	$	29,060		$	29,118		$	25,103
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries		(22,135	)		(20,744	)		(9,685	)
Investment securities losses (gains), net		219			(284	)		23
Other, net		240			543			14
Net cash provided by operating activities		7,384			8,633			15,455
Cash flows from investing activities:
Purchases of equity securities		(218	)		-			(1,339	)
Proceeds from the sale of equity securities		33			-			168
Acquisition of Midcoast		-			-			(7,614	)
Net cash used in investing activities		(185	)		-			(8,785	)
Cash flows from financing activities:
Cash dividends paid		(7,588	)		(7,383	)		(6,539	)
Issuance of subordinated debt		-			9,869			-
Purchase of treasury stock		(1,279	)		(1,374	)		(2,122	)
Sale of treasury stock to employee stock purchase plan		112			-			126
Net cash (used in) provided by financing activities		(8,755	)		1,112			(8,535	)
Net (decrease) increase in cash		(1,556	)		9,745			(1,865	)
Cash at beginning of year		15,046			5,301			7,166
Cash at end of year	$	13,490		$	15,046		$	5,301